Hony, Orix-Backed Haichang Holdings Plans $345M HK IPO

Dalian, Liaoning province-based theme park operator Haichang Holdings Ltd is planning an IPO in Hong Kong to raise as much as HK$2.68 billion ($345 million), according to a regulatory filing of the company.

The company will offer 1 billion shares for HK$2.18-2.68 apiece.

The company says it will use the proceeds to develop two theme parks, Haichang Polar Ocean World in Shanghai and Sanya Haitang Bay Dream World.

Japan’s financial service firm Orix invested US$87.9 million in Haichang for a 15% stake in 2009. In May 2012, Hony Capital invested also US$80.5 million in the company for a 12.58% stake.

After the IPO, the two existing investor will be diluted to 9.83% and 9.44% respectively, while Naijie Qu, the company’s founder and chairman, will remain the majority shareholder.

Two cornerstone investors, Central Asset Investments Management and Kaisa Group Holdings, have each pledged US$20 million and US$10 million respectively.

Haichang operates six marine parks in Dalian, Qingdao, Tianjin, Yantai, Wuhan and Chengdu, with over 40,000 types of fishes, coral and jellyfish.

The company claims to have generated RMB779 million ($126 million) in the first nine months of 2013, with park business increased 38.4% year-on-year.

Bank of America Corp and BNP Paribas are serving as the joint lead managers for the IPO.